GAM has dismissed its former head of unconstrained and absolute return, Tim Haywood, after concluding an internal investigation into the fund manager which began last year.
The dismissal of Haywood was announced as part of the company’s annual results for 2018, which interim CEO David Jacob defined as a ‘very challenging year’.
Haywood was initially suspended in July 2018 following an investigation into his conduct, which related to his management of several absolute return funds. He was retained as an employee while an investigation was undertaken.
GAM initially suspended trading of Haywood’s funds before announcing plans to liquidate his funds and relaunch the absolute return fund range with new funds.
In the latest results, the Swiss group announced the liquidation of the previous range is nearing completion.
GAM said 89-92% of the Luxembourg- and Irish-domiciled Ucits funds, and 66-72%5 of the assets in the Cayman master fund and the associated Cayman and Australian feeder funds were returned to clients since the funds were suspended last summer.
‘Since the beginning of the liquidation process, it has been GAM's priority to maximise liquidity and value for investors, while ensuring fair treatment to all clients.
‘GAM will continue the liquidation of the remaining CHF 1.5 billion ARBF assets with the same rigour and dedication that has characterised its approach so far. It expects that the liquidation will be completed in the next few months, subject to market conditions.’
In a statement focused on the Haywood investigation, the company said: ‘The suspended investment director has now been dismissed from the company for gross misconduct. There was serious failure to achieve the standard of skill and care which were to be expected of someone in his position.’